Common Mistakes to Avoid When Leasing a Car in Glendale
Leasing a car in Glendale
Leasing a car in Glendale CA means looking for a new, nice model car for less money than it would cost to purchase a car. It is important to understand the basics of the leasing process, because although a monthly payment may seem reasonable, there could be many catches in the contract.
Many people make the mistake of not reading the fine print before signing the contract, which can end up costing them tons of money. Take a look at the following common mistakes to avoid when leasing car in Glendale CA to make sure you’re getting the best deal for your buck.
Paying Too Much Upfront
It is very common to see advertisements on low monthly lease payments when leasing a car in Glendale, but they don’t necessarily come cheap. Consumers are often asked to pay thousands of dollars upfront before the start of the term in order to get those amazing low monthly payments they were promised. Although the thousands of dollars will be used to pay a portion of the car lease, that money will go down the drain if the car is damaged or stolen early on in the lease term. The leasing company would be reimbursed for the value of the car from the insurance company, but the consumer would probably be left empty-handed. It is wise to set a limit around $2000 and not go above that amount in upfront payments. Although the monthly payments will probably be higher, the consumer will not have to worry about their money going down the drain (in the leasing company’s possession).
Not Purchasing Gap Insurance
The value of any given vehicle significantly drops once it’s driven off the dealer lot. If a leased car is damaged or stolen, the car insurance company will make a payment for the value of the car which will not necessarily cover the consumer’s total obligation under the conditions of the lease.
In this situation, the consumer would have to pay the balance out of pocket unless gap insurance has been purchased. When looking for a car to lease, be sure to ask if the contract includes gap insurance coverage to protect yourself from future out-of-pocket expenses.
Underestimating Mileage
Some leasing companies advertise low monthly payments for a car lease because they have low mileage limits. Lease contracts normally have a mileage limit of 10-15,000 miles per year, after which the consumer can be charged 10-30 cents per mile after the end of the lease term.
To avoid owing a lot of money for going over the mileage limit, pay close attention to your driving habits. If you know you will drive past the mileage limit, ask for a mileage increase in the contract.
Not Taking Care of the Car
When you are leasing a car in Glendale CA and the car has damage beyond normal wear and tear at the end of the lease term, the you may have to pay for the repairs. Slight scratches might be considered normal wear by some leasing companies, but it is not wise to assume that your dealer will be lenient. Regularly caring for and maintaining the vehicle will ensure that it is in good shape upon the end of the lease period.
Agreeing to Long Lease Terms
The typical lease term will range from 2-3 years. A lease term longer than 3 years may end up costing the consumer more money in maintenance. The warranty period usually lasts for 3 years or 36,000 miles. This means that the consumer would have to get an extended warranty at an additional cost, and may even have to pay for new brakes and tires.
Why pay all the additional fees for a car that is not even yours? If you like the car enough to drive it for a long period of time, it is wiser to simply purchase the car.
These days it is not difficult to drive your dream car. It is also not difficult for leasing companies to have you sign a contract without disclosing all of the information you need to know. Make sure to do your research and lease your dream car without making the mistakes mentioned above.